In a move that has boosted the shares of Trump Media and Technology Group (NASDAQ: DJT), the parent company of the Truth Social platform, President-elect Trump has categorically denied rumors that he plans to reduce his significant stake in the company.
In a post on Truth Social, Trump declared the rumors "fake, untrue, and probably illegal," stating:
"There are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth. THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING! I hereby request that the people who have set off these fake rumors or statements, and who may have done so in the past, be immediately investigated by the appropriate authorities. Truth is an important part of our historic win, and I deeply believe in it. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!"
Following this announcement, TMTG shares rose by approximately 9%.
A Massive Stake
President-elect Trump currently holds a 59% stake in TMTG, representing 114.75 million shares. With a current share price of $30, Trump Media boasts a market capitalization of $6.14 billion, making Trump's stake worth an estimated $3.6 billion. It's worth noting that Trump's stake was valued at $5.3 billion just last Wednesday morning, demonstrating the volatility of the stock.
It's important to remember that TMTG's value is largely tied to its association with President-elect Trump. The company currently generates minimal revenue. During the third quarter of 2024, TMTG reported only $1 million in revenue and $4.7 million in interest income, while recording a net loss of $19.2 million for the quarter, including $12.1 million in legal costs.
Truth+ Streaming Service
Trump Media and Technology Group has launched its Truth+ TV streaming service on a dedicated content delivery network (CDN). Truth+ offers live TV and video on demand and is accessible through native apps for Android, iOS, and smart TVs.
Disclaimer: This is not investment advice. The author has no position in any of the stocks mentioned.
